SideSwap Pays More Than 60 Bitcoin Across About 600 Liquid Bitcoin Peg-Outs

SideSwap paid more than 60 Bitcoin (BTC) across about 600 Liquid Bitcoin (L-BTC) peg-outs by Oct. 21, giving holders a conversion route while the Liquid Federation’s direct peg-outs remain restricted.

SideSwap reopened the service Oct. 20. It exchanges one L-BTC for one BTC, less a 0.1% fee, and pays users from its own Bitcoin wallet. SideSwap refills that wallet through bulk swaps. Some refills require manual work, so requests may wait in a payment queue.

The federation’s reserve remains about 600 BTC below the amount of L-BTC in circulation. SideSwap’s payouts give holders a separate conversion route, but they do not close the reserve gap.

On Sept. 6, a consensus bug in Elements software allowed about 4,000 L-BTC without backing to be created. A subsequent SideSwap peg-out released 3,996.02 BTC from the reserve. About 3,400 BTC was returned Sept. 7.

Liquid resumed network transactions after the incident, but the federation’s direct peg-outs stayed restricted. The Liquid Federation plans to restore full backing and complete remaining security and operational work before reactivating them. It has set no date.